Salem Five Direct Certificate of Deposit
Savers with $10,000+ seeking a locked short-term rate above 4.00% APY.
Savers needing liquidity or unable to meet the $10,000 Special CD minimum.
Salem Five's Special CD lineup leads with 4.00% APY on the 5-month, 7-month, and 12-month terms — sitting roughly 0.37 percentage points above the current Fed Funds Rate of 3.63%, which puts these firmly in above-average territory for short-term CDs nationally. However, that headline rate requires a $10,000 minimum deposit, which is meaningfully higher than many online competitors that offer comparable or better rates starting at $1,000 or even $0. Savers who can't hit that threshold fall back to the Regular CD tier, where the best available rate is 2.76% APY — a full 1.24 percentage points below the Special CD peak and well below what top-tier online CDs are currently offering across the category. The rate curve drops sharply after 12 months: terms of 30 months and beyond fall to 2.00%–2.25% APY, which lags the category average for intermediate CDs. The No-Penalty 9-month CD at just 0.05% APY offers flexibility but essentially no yield — shoppers seeking penalty-free access will find far better options elsewhere. The IRA CD wrapper is a meaningful plus for retirement savers, with a more accessible $2,000 minimum on the Special IRA tier. Overall: strong short-term rate if you have the $10,000, weak beyond one year.
Confirm the rate and term are still available. Review the early-withdrawal penalty in the fee schedule — it can erase months of interest.
Jun 14, 2026
SwitchWize Research Desk · methodology
- No monthly maintenance fee
- FDIC insured up to $250,000
| Term | APY |
|---|---|
| 1 year | 4.00% |
| 1.5 years | 3.50% |
| 2 years | 3.50% |
| 3 years | 2.00% |
| 5 years | 2.25% |
Apply online via the 'Open Now' button next to your chosen CD term on the Salem Five website. You can also visit a branch or call (800) 850-5000. Have your funding amount ready — $10,000 for Special CDs or $500 for most Regular CDs.
Salem Five's Special CD lineup leads with 4.00% APY on the 5-month, 7-month, and 12-month terms — sitting roughly 0.37 percentage points above the current Fed Funds Rate of 3.63%, which puts these firmly in above-average territory for short-term CDs nationally. However, that headline rate requires a $10,000 minimum deposit, which is meaningfully higher than many online competitors that offer comparable or better rates starting at $1,000 or even $0. Savers who can't hit that threshold fall back to the Regular CD tier, where the best available rate is 2.76% APY — a full 1.24 percentage points below the Special CD peak and well below what top-tier online CDs are currently offering across the category. The rate curve drops sharply after 12 months: terms of 30 months and beyond fall to 2.00%–2.25% APY, which lags the category average for intermediate CDs. The No-Penalty 9-month CD at just 0.05% APY offers flexibility but essentially no yield — shoppers seeking penalty-free access will find far better options elsewhere. The IRA CD wrapper is a meaningful plus for retirement savers, with a more accessible $2,000 minimum on the Special IRA tier. Overall: strong short-term rate if you have the $10,000, weak beyond one year.
What happens if I withdraw from a CD early?
Most CDs charge an early-withdrawal penalty — typically 60 to 150 days of interest depending on the term. Breaking a 12-month CD at month 3 with a 90-day penalty can reduce your effective yield to near zero. Always read the fee schedule before opening.
Is a CD FDIC insured?
Yes. Certificates of deposit at FDIC-member banks are insured up to $250,000 per depositor. The fixed rate and FDIC coverage make CDs one of the safest places to hold cash you can afford to leave untouched for the full term.
What is a CD ladder?
A CD ladder splits your savings across multiple CDs with staggered maturities — for example, 3-month, 6-month, and 12-month terms. As each CD matures, you reinvest at the current rate, giving you the higher rates of longer terms and regular access to a portion of your cash.
Can the CD rate change after I open it?
No. The APY on a standard CD is locked at the opening rate for the full term. This is the main advantage over a high-yield savings account: you know exactly what you will earn, regardless of future Fed rate cuts.
Rates are sourced from Bankrate and verified by SwitchWize. SwitchWize may earn a referral fee when you click through to a partner. Content is for informational purposes only and does not constitute financial advice. Verify current rates directly with the institution before opening an account.